“We are still bullish gold and remain there until gold fails to hold the $1,200 support level. We expect the same price action we saw the last time gold was in this pattern from August through October; gold broke to the upside. We expect the same result here, but will exit below $1,200 if it fails,” according to Kitco.
Gold prices have recently stayed above the mid-August lows and a move close to $1,300 per ounce could trigger more buying. Rising interest rates have also stymied gold this year, but real rates are stabilizing, which could benefit bullion.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.